By John Letzing
McAfee Inc.'s (MFE) chief financial officer was awarded
thousands of stock units in his new company only about two weeks
before Intel Corp. (INTC) disclosed a bid to pay a 60% premium for
the security-software maker's shares.
The stock awards were granted to Jonathan Chadwick about three
months after he was named finance chief. Intel announced Thursday
that it will pay roughly $7.7 billion, or $48 a share, for
McAfee.
The day before Intel's announcement, McAfee shares closed at
$29.93. On Friday, the shares closed at $47.03.
On Aug. 6, according to filings with the Securities and Exchange
Commission, Chadwick was awarded 97,500 performance-based stock
units and 125,000 restricted stock units as part of his overall
compensation package. McAfee shares closed Aug. 6 at $32.55.
Chadwick was named chief financial officer in May, effective
June 14. The shares subject to his unit grants are eligible to vest
in tranches over the next three years, and are subject to his
"continued service to McAfee until each vesting date" as well as
the company's equity-incentive plan, according to public
filings.
Chadwick's recently granted stock units could provide a timely
and significant financial windfall.
A McAfee spokeswoman said that Chadwick's shares of McAfee
subject to the unit awards--which will be valued at $48 a share on
the day the merger with Intel is complete--will be converted into
the same dollar amount worth of Intel shares.
As Intel shares are currently trading at roughly $19, the number
of units Chadwick would end up with would ultimately be greater to
make up the difference, the spokeswoman added.
The vesting of Chadwick's shares will not be accelerated as a
result of the merger, she noted.
Intel's bid for McAfee seemed to take Wall Street by surprise.
The semiconductor giant has said the deal will help it integrate
security into chips used in mobile devices.
Prior to joining McAfee, Chadwick spent 13 years in various
finance roles at networking-gear giant Cisco Systems Inc.
(CSCO).
-By John Letzing; 415-439-6400; AskNewswires@dowjones.com